In a few days time Global Gaming Factory is supposed to have gathered millions of dollars in funding so they can acquire The Pirate Bay. But according to Wayne Rosso, the former CEO of Grokster who was involved with GGF recently, this is unlikely to happen. Meanwhile, The Pirate Bay is giving GGF a week before they cancel the deal.

Last month the BitTorrent community was shaken up when GGF publicly announced that it would take over The Pirate Bay and turn it into a legal outfit. They said they would harvest computing resources from some of its users, money from others and pay off copyright holders and indeed some of the users with money from ISPs. It was an incredible plan.

GGF painted a bright future for the site and two weeks ago Wayne Rosso, ex-CEO of Grokster joined GGF in their ambitious project, hoping to close some deals with record labels and get investors excited at their plans.

However, Rosso has already quit his position, claiming GGF’s CEO Mr. Pandeya was not straightforward with him.

“We decided that we’re not going risk our reputation further,” Rosso told TorrentFreak. According to Rosso he and his partners never received the payments promised to them and Mr. Pandeya made several other promises he couldn’t keep either.

“The more time we spent with Mr. Pandeya, the less confident we were,” Rosso said, adding that he feels the funding required to close the deal is not going to be raised based on the current lack of workable plans.

Not all was bad though. The support and enthusiasm of at least one record label was something he had never seen before according to Rosso. Unfortunately, it now seems that this enthusiastic response was based entirely on false promises.

“I don’t think there’s going to be any money raised with GGF’s current (lack of) plans,” Rosso told TorrentFreak. Besides Rosso and his partners, the people who were supposed to finance the acquisition were also misinformed.

When confronted with the news, a Pirate Bay insider said they would give GGF a week to get insurance from the investors, otherwise the deal is off. Pirate Bay spokesman Peter Sunde told us that he doesn’t know what will happen to the Pirate Bay in the future, when the deal is off the table. Time will tell.